Austin Emergency Shelter Gets Major Facelift with Help of $500K Grant

Frost Bank and FHLB Dallas Provided Funds

April 20, 2018 11:03 AM Eastern Daylight Time

AUSTIN, Texas--(EON: Enhanced Online News)--The Salvation Army’s downtown emergency shelter in Austin, Texas, has
been in continuous operation for more than 30 years, serving 800 meals a
day and providing shelter to thousands of individuals annually.

“We’re proud to partner with FHLB Dallas to widen The
Salvation Army’s reach and impact here in Austin.”

With such constant use, the 65,000-square-foot shelter was in need of
some major tender loving care. Frost Bank and the Federal Home Loan Bank
of Dallas (FHLB Dallas) helped in that effort by awarding a $500,000
Affordable Housing Program (AHP) grant to The Salvation Army Austin.

The AHP grant helped fund a $3 million renovation, which was completed
in March. The renovations included brick repair and new plumbing to a
large portion of the property. A new chiller and new furnace were added
and electrical wiring was upgraded. In addition, the project included
new flooring, energy-efficient lighting, upgraded elevators, an improved
dining room, and new industrial washers and dryers. Additional funding
was raised through a Salvation Army capital campaign, said Major Andrew
Kelly, who oversees the Austin-area command.

“The AHP grant helped us to fund more than what we would have been able
to do otherwise,” Major Kelly said. “We had a very successful capital
campaign that included this project, but it also included several
others. And, as we were going through the campaign and working on the
renovation, the cost of construction continued to go up. Originally, the
cost was expected to be $2 million and it ended up increasing to $3
million. The grant definitely helped us get the work accomplished to
make the building more livable for the residents and support staff.”

The Salvation Army kept the shelter open and operating at near full
capacity throughout the renovations, housing about 250 people per night.

“We all know The Salvation Army from its annual Red Kettle campaign but
many are unaware of the daily, steady work it does behind the scenes to
provide a safety net for children, women and men who may be hungry or
homeless,” said Frost Bank’s Senior Vice President and CRA Officer Donna
Normandin. “We’re proud to partner with FHLB Dallas to widen The
Salvation Army’s reach and impact here in Austin.”

Greg Hettrick, first vice president and director of Community Investment
at FHLB Dallas, said Frost Bank has long championed the work of
charitable organizations that provide aid to vulnerable populations.

“Frost has taken an active role in supporting mission-minded agencies
through the AHP and we thank them for their partnership,” Mr. Hettrick
said.

AHP grants are awarded through FHLB Dallas member institutions such as
Frost Bank. FHLB Dallas annually returns 10 percent of its profits in
the form of AHP grants to the communities served by its member
institutions. AHP grants fund a variety of projects, including home
rehabilitation and modifications for low-income, elderly and
special-needs residents; down payment and closing cost assistance for
qualified first-time homebuyers; and the construction of low-income,
multifamily rental communities and single-family homes.

In 2017, FHLB Dallas awarded $7 million in grants to 19 affordable
housing projects. The grants will help create 1,108 new or rehabilitated
housing units. Since the inception of the AHP in 1990, FHLB Dallas has
awarded more than $261 million in AHP and AHP-funded grants to assist
more than 48,500 families.

About Frost Bank

Frost is the banking, investments and insurance subsidiary of
Cullen/Frost Bankers, Inc. (NYSE: CFR), a financial holding company with
$31.7 billion in assets at December 31, 2017. One of the 50 largest U.S.
banks by asset size, Frost provides a full range of banking investments
and insurance services to businesses and individuals in the Austin,
Corpus Christi, Dallas, Fort Worth, Houston, Permian Basin, Rio Grande
Valley and San Antonio regions. Founded in 1868, Frost has helped Texans
with their financial needs during three centuries. For more information,
visit http://www.frostbank.com.

About the Federal Home Loan Bank of Dallas

The Federal Home Loan Bank of Dallas is one of 11 district banks in the
FHLBank System created by Congress in 1932. FHLB Dallas, with total
assets of $68.5 billion as of December 31, 2017, is a member-owned
cooperative that supports housing and community investment by providing
competitively priced loans and other credit products to approximately
835 members and associated institutions in Arkansas, Louisiana,
Mississippi, New Mexico and Texas. For more information, visit fhlb.com.